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Archive for July, 2017

Criteria #1: I look for a quality rating that is average or better. You don’t need to find the best quality companies–average or better is fine. Benjamin Graham recommended using Standard & Poor’s rating system and required companies to have an S&P Earnings and Dividend Rating of B or better. The S&P rating system ranges from D to A+. I try to recommend stocks with ratings of B+ or better, just to be on the safe side.

Criteria #2: Graham advised buying companies with Total Debt to Current Asset ratios of less than 1.10. In value investing it is important at all times to invest in companies with a low debt load, especially now with tight lending in a weak economy. Total Debt to Current Asset ratios can be found in data supplied by Standard & Poor’s, Value Line, and many other services.

Criteria #3: I check the Current Ratio (current assets divided by current liabilities) to find companies with ratios over 1.50. This is a common ratio provided by many investment services and is especially important now, because you want to make sure a company has enough cash and other current assets to weather any further declines in the economy.

Criteria #4: Criteria four is simple. Find companies with positive earnings per share growth during the past five years with no earnings deficits. Earnings need to be higher in the most recent year than five years ago. Avoiding companies with earnings deficits during the past five years will help you stay clear of high-risk companies.

Criteria #5: Invest in companies with price to earnings per share (P/E) ratios of 9.0 or less. I am looking for companies that are selling at bargain prices. Finding companies with low P/Es usually eliminates high growth companies, which should be evaluated using growth investing techniques.

Criteria #6: Find companies with price to book value (P/BV) ratios less than 1.20. P/E ratios, mentioned in rule 5, can sometimes be misleading. P/BV ratios are calculated by dividing the current price by the most recent book value per share for a company. Book value provides a good indication of the underlying value of a company. Investing in stocks selling near or below their book value makes sense.

Criteria #7: Invest in companies that are currently paying dividends. Investing in undervalued companies requires waiting for other investors to discover the bargains you have already found. Sometimes your wait period will be long and tedious, but if the company pays a decent dividend, you can sit back and collect dividends while you wait patiently for your stock to go from undervalued to overvalued.

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A consortium led by Yanlord Land Group and Perennial Real Estate Holdings has acquired a 33.5 per cent stake in United Engineers at $2.60 a share.

The investor group has also agreed to buy a 29.9 per cent stake in UE subsidiary WBL Corp at $2.07 a share. They will sell a further 19.9 percent stake if the bidding group manages to obtain at least 50 percent of WBL.

The consortium will pay $729.7 million for the stakes.

The two stakes are held by OCBC Bank, its insurance arm, Great Eastern and the bank’s founding Lee family.

Chinese property developer Yanlord holds 49 per cent of the consortium, while Singapore landlord Perennial accounts for 45 per cent and a Chinese investor owns the remaining 6 per cent.

Their offer represents a 7.9 per cent premium to the United Engineers closing price of $2.41 on Sept. 26, the day before OCBC announced a strategic review of its stake. It is a 4.1 per cent discount to the stock’s last price this week before trading was suspended .

The deal would cap a years-long push by OCBC to offload its stake in United Engineers, whose properties include Singapore shopping centers like Rochester Mall and the UE BizHub City mixed-used development.

Credit Suisse Group AG is advising OCBC and insurance unit Great Eastern Holdings Ltd. on a strategic review of their stakes in United Engineers.

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A well-developed money market is essential for a modern economy. Historically, money market has been developed as a result of industrial and commercial progress, it has played important role in the process of industrialization and economic development of every country. Core Significance & Importance of a well developed money market and its various attributes & functions can be understood by these core pointers through wide explanation –

Trade Financing – To get and have a global presence Money Market plays a vital role in developing and financing both the internal and external markets and viability of cash inflow continuously to have businesses run smoothly and productively . To have commercial trades run systematically bills of exchange are offered to traders which are discounted by bill market .

1) Any business related to markets and its subsidiary functions are mostly helped by Money Market by providing short term and long term loans to have their capital inflow going smoothly by various financial instruments as bills of exchange , financial bills , commercial papers.

2) Industries require long-term loans, and to secure loans they look towards capital market, wherein the viability of capital market solely depends upon the crux,sentiments and nature of different conditions prevailing in the money market. Capital Market is prone and gets affected by short-term interest rates and long-term interest rates,and hence these variations in interest rates definitely affects industries in totality and their performances.

Enhancing Investments & Profits – Commercial Banks do have large scale liquid money as assets and Money Markets primary focus is to channelize and churn that money in to proper investments to earn profits though commercial banks always try to keep a sharp balance between risk and reward ratio in view any unforeseen cash demands by different stake holders and depositors this is called as balancing the liquidity flow of cash . All the commercial banks do not keep the cash assets always in liquid form however they keep it in safeguarded way called as Bills Of Exchange and get it liquidated any time whenever the cash demands are raised by their stake holders and depositors. This way there money is also in safe hands and cash Liquidity is maintained appropriately.

Self Reliable & Self Sufficient – Central Bank of any Country is the backbone for any financial stability as Money of each and every bank Commercial – Govt is safe guarded by Central Bank however all commercial banks through Money Market keeps on investing their money in Short Term Loans and whenever they want money they call it from Money Market hence they avoid it borrowing it from Central Bank at Higher Rate this way the smooth functioning of investments and returns keep on happening and constant flow of Cash is maintained and businesses run smoothly.

Assistance to Central Bank – Money Markets if not functioning properly in its absence Central Bank appropriately fulfills the responsibilities and demands towards society however Money Markets gives ease in different ways to to have easy functioning of Central Bank.

A) Central Bank Or Reserve Bank Of any country can easily implement different rate of interest as per the market demands and scenarios hence Money Market and its customer friendly instruments can help Central Bank to formulate different rules to have different banking Policies implemented smoothly and efficiently.

B) As markets are constantly endangered due to different markets risks Money Market in one way helps to give signals to take immediate actions getting implemented by Central Bank or Reserve Bank to have new policies getting implemented in scenarios of uncertainty and in one way stabilizing the Economy.

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Temasek Holdings announced on Tuesday (Jul 11) a record net portfolio value of S$275 billion (US$197 billion) as at end-March 2017, up from S$242 billion (US$180 billion) a year ago.
The Singapore-based investment company posted a one-year Total Shareholder Return of 13.4 per cent for the year, reversing from the 9 per cent decline the year before.
In a statement, Temasek said it continued to reshape its portfolio during the year, while adopting a measured and disciplined investment pace.
As and when opportunities arise, Temasek said it “capitalises on rich market valuations to exit some of (its) holdings”, while maintaining the flexibility to “re-enter when valuations are corrected”.
Over a longer term 10-year period, annualised Total Shareholder Return was 4 per cent.
During the financial year, Temasek invested S$16 billion and divested S$18 billion of its portfolio, resulting in a net divestment position for the first time since the March 2009 year.
Speaking at a media briefing, Temasek president and joint head of investment proup, portfolio management group, and Singapore, Chia Song Hwee, said: “Given the market environment, and high valuation, we see less investment opportunity because we find that, generally speaking, the market pricing is a bit too high.”
“But on the flip side, it allowed us to exit some of our positions or sell part of our stake given the valuation may be close to our intrinsic value.”
Executive director and CEO of Temasek International, Lee Theng Kiat, said it continues to focus on “longer term opportunities such as technology, life sciences, agribusiness, non-bank financial services, consumer, and energy & resources”.
Investments in these new focus areas made up 24 per cent of its portfolio last year, up from 8 per cent six years ago, and delivered better returns than its average return from the overall portfolio.
The main sectors for its investments during the year were telecommunications, media & technology, transportation & industrials, and life sciences & agribusiness.
Temasek said the US accounted for the largest share of investments during the year. Meanwhile, it continued to make investments in Asia, with Singapore accounting for the largest share of these investments.
Key investments in Singapore during the year included an increased stake in Singtel, and acquisition of all minority shares of SMRT.
Main divestments included positions in Synchrony Financial, Bharti Airtel, Lafarge Holcim and Evonik Industries. It also exited some holdings via acquisitions by third parties, including divestments of its stakes in Neptune Orient Lines and B/E Aerospace.
Looking ahead, Temasek said it had a “constructive outlook” on the global economy, but cautioned of political risks and stretched public market valuations in the medium term.
Temasek’s head of strategy and senior managing director of portfolio strategy & risk group, Michael Buchanan, said the investment firm was “cautiously confident that various key economies will weather their medium term challenges”, despite some geopolitical risks on the horizon.

Since its inception in 1974, Temasek’s compounded annualised Total Shareholder Return is 15 per cent in Singapore dollar terms.

Pentamaster Corporation Berhad (an investment holding company) is a global leader in providing advanced, world-class automation solutions and services to help worldwide customers meet their productivity challenges and maintain the edge required for success in a competitive business environment. Through our subsidiaries, we provide an integrated range of innovative services in manufacturing of automated and semi-automated machinery and equipments, designing and manufacturing of precision machinery components, as well as design, assembly and installation of computerized automation systems and equipments.Our customers include major semiconductor, computer, pharmaceutical, medical, food & beverage, automotive and consumer goods industries worldwide.With more than 15 years of experience in dealing with high-end technology companies worldwide, we are confident to compete in terms of manufacturing flexibility, quality services, cost-effective solutions and timely delivery to our customers.

COMPANY NEWS

PENTAMASTER CORPORATION BERHAD – The Board of Directors of PCB (“Board”) wishes to announce that the Company is considering the pursuit of a separate listing of its automated solution business on the Main Board of the Stock Exchange of Hong Kong Limited (“HK Stock Exchange”).

FUNDAMENTAL OUTLOOK

From last few months the company has shown the positive trend to attract the investor to invest in PENTAMASTER CORPORATION LTD. As the recorded revenue of 2017 first quater is higher by RM47.6 million as compare to RM28.6 million in the corresponding quarter last year i.e increase by 66.4%. There is increase in profit before tax of company by 121.4%.it is expected that the demand of aur test solution for smart devices will grow rapidly. Total assests of the company has increased in 2017 as compare to 2016 by 29.8%.

might possible the increase in the stock in near future as from last six months its on up trend but currently the price of stock is lesser so its a right time for investor to buy the stock at lesser price only which surely provide profit of approx 20 to 25 cents in 4-5 weeks. It is expected that the stock price will increase.